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Oil Search PNG LNG project recovering after earthquake

Since resuming activity in late April after the February Highlands earthquake, Oil Search’s LNG project in Papua New Guinea has performed strongly with a 12 per cent second quarter increase in total production.

According to their second quarter report, Oil Search saw a total production of 5.40 MMboe in May and June 2018, up from 4.84 MMboe in the first quarter.

Oil Search’s Kutubu, Agogo, Moran and Gobe Main oil fields went offline after a 7.5 magnitude earthquake occurred in the Hela Province on 26 February 2018.

Despite activity resuming at the Kutubu and Gobe fields, the Agogo and Moran fields remain offline, resulting in the company experiencing a quarterly revenue decline of 11 per cent.

Oil Search Managing Director Peter Botten said the company was recovering well from the disaster, with planned modifications to continue in the coming year.

“During May and June, the PNG LNG project operated at above pre-earthquake levels,” he said.

“These production improvements reflect planned modifications to the Hides Gas Conditioning Plant and maintenance work on the LNG trains, which were brought forward and undertaken while PNG LNG operations were shut down, combined with high operating of all project infrastructure.

“Oil production is expected to be back at pre-earthquake levels by the first quarter of 2019.”

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